David Szabo Quoted in Bloomberg Law on Impact of Information Technology in Health Care M&A Deals

David Szabo, Co-Chair of Locke Lord’s Health Care practice and a Partner in the Firm’s Boston office, was quoted in a Bloomberg Law article examining the impact of health care information technology systems in contemplating and negotiating a merger or acquisition. Szabo, who has extensive experience in advising health-care dealmakers, points out that incompatible IT systems “can create great difficulties for management” when executing a deal and also notes “there are also hidden costs to replacing or updating a system, such as the expense of training the staff on the new system and the productivity lost while doctors and nurses become familiar with it.”

In regard to the benefits of updating or replacing a system, Szabo noted “hospitals look at acquisitions and mergers as ways to help them achieve economies of scale, better analyze population health data that will enable them to predict trends and develop treatment models, and maximize revenue under a value-based payment system.”

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